NASSCO TO TAKE OVER SHIPYARD IN VIRGINIA

For the second time in a year, defense giant General Dynamics has purchased a shipyard and placed it under the control of NASSCO, a shipbuilding and repair company headquartered on San Diego Bay.

General Dynamics said it has acquired the Ship Repair and Coatings Division of Earl Industries, which is based in Portsmouth, Va. That unit repairs Navy ships in Portsmouth and at a yard in Mayport, Fla., the home of a large Navy base. Earl employs about 575 people at the two yards. The company’s work includes repairing nuclear-powered aircraft carriers, as well as other ships.

The value of the deal was not disclosed. But General Dynamics, based in Falls Church, Va., said in a statement that it expects value “to be accretive to earnings in 2013. The transaction is expected to close this summer.”

Fred Harris, NASSCO’s president, said in a statement, “The acquisition of the Ship Repair and Coatings Division of Earl Industries will extend the reach of NASSCO’s ship maintenance and repair operations in two key East Coast naval ports. This move enhances General Dynamics’ ability to deliver cost effective maintenance and repair services to the U.S. Navy, maximizing the life of in-service ships for the betterment of the entire U.S. fleet.”

Last fall, General Dynamics bought Metro Machine, a Navy repair shipyard in Norfolk, Va. Metro is under the control of NASSCO.

In recent days, there’s been speculation in the business press that General Dynamics will buy a majority stake in the Austal shipyard in Alabama. That yard builds littoral combat ships and joint high-speed vehicle ships.

Tim Colton, who writes the influential blog Maritime Memos, said online Friday, “Sources tell me that BAE is looking at strengthening its defenses by buying MHI and/or Tecnico. At this rate, virtually all private-sector naval repair work will be concentrated in yards owned by either GD or BAE.”

Gary Robbins • U-T

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